Tourism numbers during the Olympics fell to their lowest summer level for almost ten years as travellers were put off by warnings of gridlock and chaos.

Although the Government had boasted the Games would deliver a boost to retailers, restaurants and attractions, foreign visitors to the UK actually fell 5 per cent compared with 2011.

The figures, by the Office for National Statistics, showed 3.03million tourists arrived in Britain in August – 176,000 less than the same time last year.

Some of London's busiest roads, including Regent Street above, were deserted during the London Olympics

It was the lowest August number since
2003, when Tony Blair’s government joined America in invading Iraq –
resulting in foreign tourism, particularly from the US, falling sharply.

Taking July and August together, the
total number of tourists was 6.21million – a decrease of 358,000. The
figures follow complaints by business leaders during the Games that
overblown warnings of travel chaos had turned some key tourism sites
into ‘ghost towns’.

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At the time, photos taken outside
normally busy attractions such as the Tower of London and Oxford Street
showed the normal summer queues were absent.

A survey of London restaurants also found takings were down by an average of 40 per cent.

Tourism chiefs also pointed to the unusually wet summer as having put some visitors off.

Despite this, then culture minister
Jeremy Hunt denied that businesses were suffering, saying: ‘This is absolute nonsense and we have just got to knock this on the head.

Tourism bosses hope the millions worldwide who watched the Games, including the Paralympic closing ceremony above, will now consider holidaying in the UK

‘Anyone who has a business anywhere in
London is frankly quids in. Some West End businesses have done
extremely well because they’ve marketed on the back of the Olympics.
Some businesses have taken a hit, others are doing well, but overall
there is a big increase in business in the East of London.’

But Nick Varney, chief executive of
Merlin Entertainments, which runs the London Eye and Madame Tussauds,
and is the second-largest attractions operator in the world behind
Disney, said yesterday: ‘These figures make clear Jeremy Hunt had no
idea what he was talking about.

‘The Government’s warnings to stay
away from London worked all too well. The Olympics was a marvellous
opportunity to showcase what Britain has to offer.

‘Everyone involved in delivering the Games did a wonderful job.

‘But the country cannot be quids in
and cannot get a return on the £10billion it cost without a radical
change in its approach to tourism.’

The ONS figures also revealed that
while the number of foreign tourists fell in August, the amount they
spent increased by 9 per cent to £2.4billion.

It is hoped the Games showcased venues across the country, including East London, Weymouth, and Eton Dorney, where Britain's Helen Glover and Heather Stanning won gold medal in the women's pair final

However, this was mainly due to the cost of Olympics tickets rather than a rise in spending in shops, hotels and restaurants.

Sport and Tourism Minister Hugh
Robertson said: ‘This summer put the UK firmly in the global spotlight,
allowing us to shape international perceptions and help deliver
long-term trade and tourism benefits.

‘The Olympics generated record tourist
spend, up 9 per cent on August last year, helping to boost the
country’s economy and giving us enormous confidence as we build on the
fantastic showcase of this summer.

‘And domestic tourism was also strong, with more than £760million spent on Olympics-related day trips.

‘We also know some tourists may not
have wanted to come during the Games, which is why we focused on
building a long-term tourism legacy.’